What is the definition of a Real Estate Investment Trust (REIT)

A Real Estate Investment Trust (REIT) is a security that trades like any asset on an exchange, similar to an ETF. A REIT pools the funds of investors and then invests it into real estate via mortgages or properties.

There are 3 main kinds of REIT:

• Mortgage - loaning money for mortgage purposes and receiving the interest payments
• Equity - investing in actual properties and owning a stake in them and receiving money either from rent or from resale
• Hybrid - combination of Equity and Mortgage